Frequently Asked Questions

The Central Bank has again reviewed the level of capital reserves set aside by Irish banks. Capital acts as a cushion against losses. The results of this exercise have determined that banks should hold higher levels of capital reserves into the future. These higher requirements should ensure that banks emerge from the current difficulties in a stronger position. The new capital reserves are designed to cover expected losses for the next three years.

In banking, capital comprises mainly share capital, capital contributions, reserves, and certain types of debt and financial instruments. Capital acts as a cushion against losses, it can be seen as a measure of financial health. Capital is depleted when banks experience losses.

Collectively the four banks will be required to raise €24bn in capital in order to remain above a minimum capital target of 10.5% Core Tier 1 in the base scenario and 6% Core Tier 1 in the stress scenario, plus allowing for an additional protective buffer. Each bank must meet a liquidity requirement of a target loan to deposit target ratio of 122.5% by 2013, through a combination of run-off and disposals of non-core assets. Please see the press release for individual bank figures.

Please see the press release and report on the Financial Measures Programme that are published on our website. The report includes stress tests based on adverse macro economic scenarios to establish the capital needs of banks over the next three years.

This development will make no difference to how you interact with your bank and you can expect your business to be handled as normal. Branches will continue to open as normal and the staff there will continue to assist you with your banking requirements.

Deposits will continue to be covered by the Deposit Guarantee Scheme and the Eligible Liabilities Guarantee Scheme 2010.

Yes. The Deposit Guarantee Schemes currently in place for depositors are as follows:

A. Existing deposits are protected under the Deposit Guarantee Scheme up to a limit of €100,000 per person per institution. See www.nca.ie for a list of participating banks.

B. The Deposit Guarantee Scheme is supplemented by the government guarantee scheme which guarantees the balance of deposits in excess of €100,000. See www.nca.ie for a list of participating banks in each scheme

C. If you have a term deposit (up-to 5 years) that was made after your institution joined the Eligible Liabilities Guarantee Scheme then you are protected to maturity. Check with your bank.

The current Deposit Guarantee Scheme (limit €100,000) and the Eligible Liabilities Guarantee Scheme(over €100,000) covers all deposits with Irish banks. Go to www.nca.ie for more info and check with your bank.

This development will make no difference to how you interact with your bank and you can expect your business to be handled as normal. Branches will continue to open as normal and the staff there will continue to assist you with your banking requirements.